HOUSE BILL No. 6509

September 24, 2008, Introduced by Rep. Clemente and referred to the Committee on New Economy and Quality of Life.

 

     A bill to amend 1986 PA 281, entitled

 

"The local development financing act,"

 

by amending section 5 (MCL 125.2155) and by adding section 12c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5. (1) The authority shall be under the supervision and

 

control of a board of 7 members appointed by the chief executive

 

officer of the city, village, or urban township creating the

 

authority subject to the approval of the governing body creating

 

the authority. The board shall include 1 member appointed by the

 

county board of commissioners of the county in which the authority

 

is located. The board shall include 1 member representing a

 

community or junior college in whose district the authority is

 

located appointed by the chief executive officer of that community

 


or junior college. The board shall also include 2 members appointed

 

by the chief executive officer of each local governmental unit,

 

other than the city, village, or urban township creating the

 

authority, which levied 20% or more of the ad valorem property

 

taxes levied against all property located in an authority district

 

in the year before the year in which the authority district is

 

established. However, those additional members shall only vote on

 

matters relating to authority districts located within their

 

respective local unit of government. Of the members first

 

appointed, an equal number, as near as possible, shall have terms

 

designated by the governing body creating the authority of 1 year,

 

2 years, 3 years, and 4 years. However, a member shall hold office

 

until the member's successor is appointed. After the first

 

appointment, each member shall serve for a term of 4 years. An

 

appointment to fill a vacancy shall be made in the same manner as

 

the original appointment. An appointment to fill an unexpired term

 

shall be for the unexpired portion of the term only. Members of the

 

board shall serve without compensation, but shall be reimbursed for

 

actual and necessary expenses.

 

     (2) The chairperson of the board shall be elected by the

 

board.

 

     (3) Before assuming the duties of office, a member shall

 

qualify by taking and subscribing to the constitutional oath of

 

office.

 

     (4) The board shall adopt rules governing its procedure and

 

the holding of regular meetings, subject to the approval of the

 

governing body. Special meetings may be held when called in the

 


manner provided in the rules of the board. Meetings of the board

 

shall be open to the public, in accordance with the open meetings

 

act, Act No. 267 of the Public Acts of 1976, being sections 15.261

 

to 15.275 of the Michigan Compiled Laws 1976 PA 267, MCL 15.261 to

 

15.275.

 

     (5) Subject to notice and an opportunity to be heard, a member

 

of the board may be removed before the expiration of his or her

 

term for cause by the governing body. Removal of a member is

 

subject to review by the circuit court.

 

     (6) All expense items of the authority shall be publicized

 

annually and the financial records shall be open to the public

 

pursuant to the freedom of information act, Act No. 442 of the

 

Public Acts of 1976, being sections 15.231 to 15.246 of the

 

Michigan Compiled Laws 1976 PA 442, MCL 15.231 to 15.246.

 

     (7) The provisions of subsections (1), (2), (3), (4), and (5)

 

of this section shall not apply to an authority exercising its

 

powers under section 3(3).

 

     Sec. 12c. (1) An aerotropolis development corporation

 

establishing an authority under section 3(3) shall notify the

 

Michigan economic development corporation of the designation of an

 

aerotropolis development area.

 

     (2) If the aerotropolis development corporation determines

 

that a sale price or rental value at below market rate will assist

 

in increasing employment or private investment in an aerotropolis

 

development area, the authority and municipality have authority to

 

determine the sale price or rental value for public facilities

 

owned or developed by the authority and municipality in the

 


aerotropolis development area at below market rate.

 

     (3) If public facilities are conveyed or leased at less than

 

fair market value or at below market rates, the terms of the

 

conveyance or lease shall include legal and equitable remedies and

 

rights to assure that the public facilities are used as eligible

 

property. Legal and equitable remedies and rights may include

 

penalties and actual or liquidated damages. If public facilities

 

for public benefit are provided to private owners or users of

 

eligible property, the terms of the conveyance or lease shall

 

include a benefit to the private owner or user.

 

     (4) The Michigan economic development corporation shall market

 

the authority district including aerotropolis development areas.

 

The Michigan economic development corporation, an aerotropolis

 

development corporation, and an authority may contract with each

 

other or with any third party for these marketing services.

 

     (5) For an authority exercising its powers under section 3(3),

 

each municipality which is a party to the interlocal agreement or

 

articles of incorporation establishing the aerotropolis development

 

corporation by a majority vote of the members of its governing body

 

may make a limited tax pledge to support the authority's tax

 

increment bonds issued under section 14 or, if authorized by the

 

voters of the municipality, may pledge its full faith and credit

 

for the payment of the principal of and interest on the bonds. The

 

municipalities that have made a pledge to support the authority's

 

tax increment bonds may approve by resolution an agreement among

 

themselves establishing obligations each may have to the other

 

party or parties to the agreement for reimbursement of all or any

 


portion of a payment made by a municipality related to its pledge

 

to support the authority's tax increment bonds.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 6502(request no.

 

07377'08 **).

 

     (b) Senate Bill No.____ or House Bill No. 6503(request no.

 

07781'08 **).

 

     (c) Senate Bill No.____ or House Bill No. 6504(request no.

 

07806'08 **).

 

     (d) Senate Bill No.____ or House Bill No. 6505(request no.

 

07807'08 **).

 

     (e) Senate Bill No.____ or House Bill No. 6506(request no.

 

08280'08 *).

 

     (f) Senate Bill No.____ or House Bill No. 6507(request no.

 

08281'08 *).

 

     (g) Senate Bill No.____ or House Bill No. 6508(request no.

 

08282'08 *).

 

     (h) Senate Bill No.____ or House Bill No. 6510(request no.

 

08284'08 *).

 

     (i) Senate Bill No.____ or House Bill No. 6511(request no.

 

08285'08 *).